SandRidge Energy entered into a new $600 million reserve-based credit facility with a $425 million borrowing base, effective February 10, 2017.
The refinancing amended the terms of the prior credit facility and provided the company with, among other things:
- An increased principal commitment to $600 million from $425 million
- A $425 million conforming borrowing base
- A $50 million increase in available cash (representing the release of $50 million in escrow to the company
- An elimination of certain negative covenants, such as the PDP asset coverage ratio, $20 million minimum liquidity requirement and limitations on capital expenditures
- Conventional semi-annual borrowing base redeterminations beginning October 1, 2017
- A total net leverage ratio covenant of 3.50:1.00 and an interest coverage ratio covenant of 2.25:1.00
- A maturity date of March 31, 2020
According to a related filing, Royal Bank of Canada served as administrative agent for the lender group.
Oklahoma City-based SandRidge Energy is an oil and natural gas exploration and production company with its principal focus on developing high-return, growth-oriented projects in the U.S. Mid-Continent and Niobrara Shale.